Benefits of purchasing property in Spain

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property in Spain

Whether you are planning to purchase real estate on the Costa Blanca, Tenerife, Mallorca, Ibiza, or directly real estate in Barcelona, a large Catalan metropolis – as the owner of a villa, house, or apartment in Spain, you have various options for improving your life situation and understanding how it is personally economically improving.

Find out what benefits you can expect when buying an apartment, house, villa, or commercial real estate in Spain. For example, apartments for sale with sea views in Spain.

Live where others rest.

Maybe you dream of spending your retirement in the Iberian Peninsula in a few years or prefer to rent out with the possibility of resale: thanks to the healthy Mediterranean climate, Spain is not only famous as a popular holiday destination and a cheap pension at home but also from an economic point of view.

Tax and financial benefits when purchasing property in Spain

If your tax residence is outside of Spain, you receive tax relief regarding property tax, income tax, inheritance, and gifts when financing the purchase of Spanish property.

Added value in popular tourist areas

The strategic acquisition of real estate in Spain can increase the property’s value. Depending on the location and tourist development, it is possible to rent out your property profitably until you want to use it yourself, or sell it profitably, which will improve your financial situation.

Purchase and lease of commercial real estate

Buying a commercial property allows solvent tenants to start their businesses under the Spanish sun successfully. Especially during the high season, you can benefit from rental income, enabling you to reinvest in the off-season and carry out renovations to increase the value further.

Specialized real estate agents provide comprehensive support during the purchase.

For the purchase of a real estate in Spain to be legally efficacious and to avoid mistakes, it is advisable to involve another person in addition to the notary in the planned purchase of the real estate. This may be, for example, a specialized real estate aggregator that can guide you through the upcoming purchase and performs an advisory function, such as Spain-Real.Estate.

A real estate agent or consultant will provide additional information about buying property in Spain as your on-site consultant will accompany you on your way to your future dream property and assist you with well-founded specialist knowledge of real estate in Spain.

Features of the Purchase of real estate in Spain

Further fees when buying property in Spain are formed from the tax on the transfer of ownership, government fees, notary fees, and the costs of obtaining a loan if implied. The purchase tax for residential buildings in Spain since 2013 is between 7 and 10%, depending on the province.

Notary fees and fees will amount to about 2-3% of the cadastral price of the object – the exact figure can be determined in each case by some parameters, including the location of the building, age, history, and even the number of pages in the contract of sale.

The same expenses include a small fee for obtaining an NIE (foreign tax identification number), which is necessary for registering a new owner with the tax department. The seller of real estate always pays the commission to a realtor in Spain, and when contacting a bona fide agency, the purchase price should remain the same for you.

Many have already seen that Spain offers tourists and foreign investors diverse opportunities. It remains only to add all these advantages and enjoy a pleasant choice.

Popular regions for buying property by foreigners

In Spain, there are regions where the demand for real estate is higher than the general one in the country. Locals and foreigners most often choose the following areas for buying an apartment or house:

  • Costa Blanca, province of Alicante;
  • Barcelona and Madrid;
  • Balearic Islands;
  • Costa Brava.

Residence permit in Spain when buying property

Outsiders who buy real estate in Spain for at least €500,000 can apply for a residence permit. Initially, a residence permit is issued to an immigrant for 2 years. The owner of the object can extend the residence permit if the property continues to be in his ownership.

Requirements for applicants who wish to obtain a Spanish residence permit based on real estate investment:

  • the presence of an investor visa or stay in the territory of the state within 90 days after the expiration of the entry permit;
  • providing proof of investment in real estate;
  • visiting Spain from 1 time during the permitted period of stay;
  • coming of age;
  • proof of non-conviction in Spain and the country of residence;
  • have a health insurance policy;
  • the absence of a ban on entry into the state;
  • Providing evidence of the availability of funds for living in Spain.
  • The applicant submits an application and documents for obtaining a residence permit online through the electronic office of the Ministry of Integration, Social Security, and Migration.